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BCFSA Issues $100,000 Penalty for Unlicensed Property Management Activity
Yiu Keung Ng and Kitsilano Management Ltd. Disciplined for Providing Rental Property Management Services Without a Licence
Vancouver, December 16, 2021 – BC Financial Services Authority (“BCFSA”) has issued a penalty of over $100,000 to Kitsilano Management Ltd. (“Kitsilano”) and its sole director, Yiu Keung (“Anthony”) Ng, for providing rental property management services without a licence.
The Real Estate Services Act (“RESA”) requires that persons providing real estate services in B.C. must have a licence to do so.
BCFSA began investigating after two complaints were made by tenants of properties managed by Kitsilano. The investigation revealed that from 2000 to 2017, Mr. Ng used his company and position as a Chartered Professional Accountant, a Chartered General Accountant, and a Notary Public to manage up to 23 rental properties in and around Vancouver on behalf of overseas clients, contrary to RESA. Mr. Ng and Kitsilano never held a licence to provide rental property management services in B.C.
“The activities of unlicensed individuals in B.C.’s financial services sector put the public at risk and undermine the integrity of the sector,” said Blair Morrison, Chief Executive Officer and Superintendent of Real Estate, BCFSA. “This penalty is appropriate given the scope of this misconduct and indicates our resolve to address unlicensed actors. BCFSA will continue protecting the public by investigating and disciplining cases of misconduct to ensure only licensed individuals who act in compliance with our regulatory regime provide real estate services in BC.”
The decision contained in a Consent Order issued on December 3, 2021 requires Kitsilano and Mr. Ng to pay a total penalty amount of $103,440, comprised of: a $50,000 penalty; an additional $50,000 penalty to represent disgorgement of profits received from the unlicensed activity; and $3,440 as investigation expenses.
RESA was amended by the legislature in 2016 to increase the maximum penalties for misconduct, and to include the option for BCFSA to levy an additional penalty up to the amount of payment the person received for the contravention. The $103,440 penalty is the highest amount issued by BCFSA for unlicensed activity under RESA.
ABOUT BCFSA
BC Financial Services Authority (“BCFSA”) is a Crown regulatory agency of the Government of British Columbia. BCFSA oversees the financial services sector which includes pension plans, mortgage brokers, real estate services, real estate development marketing, and financial institutions (credit unions and insurance and trust companies). BCFSA also administers the Credit Union Deposit Insurance Corporation of British Columbia (“CUDIC”).
Links
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Warren Mirko
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Visit: www.bcfsa.ca